On behalf of its M7 REIP III fund, it has agreed a new 15-year lease at Newton Aycliffe Business Park with Gestamp, which will use the unit to make parts for Jaguar Land Rover.

Gestamp has been a tenant of the 124,262 sq ft industrial asset since 2014 and, following M7 REIP III’s acquisition in October 2015, agreed a restructured lease with an annual rent of £310,000, which will rise to £373,000 in 2019.

M7 will invest £1m in the factory to provide a new car park, hard standing areas and a new aluminium plant.

“We acquired this industrial property having identified a number of opportunities to achieve significant rental uplift and drive value, including the fact the supply of large space in Newton Aycliffe and the A1 corridor sits at an all-time low and the demand for such assets continues to outstrip supply,” said John Murnaghan, head of UK at M7 Real Estate.

Connect Property North East advised M7. Tallent were advised by Hennings Hulme.